The Westgold Resources Ltd (ASX: WGX) share price is in focus today after the company unveiled a major expansion plan for its Meekatharra processing hub, aiming to significantly boost gold production and improve future cashflow.
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What did Westgold Resources report?
- Scoping Study for Meekatharra Expansion Plan (MXP) to lift processing capacity from 1.8Mtpa to 2.9Mtpa in FY28
- Expected to add approximately 47,000 ounces per year to gold production, increasing total gold output to 1.6 million ounces over 10 years (up 424,000 ounces)
- Indicative capital cost of $100 million with a targeted payback period of 9 months
- All-in Sustaining Cost (AISC) range forecast between $1,968 – $2,406 per ounce for life-of-mine
- Group NPV uplift of about $1.1 billion at $5,500/oz gold price, up to $1.6 billion at spot ($6,000/oz)
- Westgold holds $939 million in cash, bullion and liquid investments as at 30 June 2026
What else do investors need to know?
The Meekatharra Expansion Plan is designed as a low-capital, brownfields upgrade, leveraging existing infrastructure and equipment that's already on hand. By installing a parallel crushing and single-stage SAG milling circuit, Westgold aims to process more ore and unlock additional emerging supply, including increased outputs from the Bluebird–South Junction mine and several open pits in its Murchison Open Pit program.
Resource definition drilling and open pit optimisation work has already commenced to further support and de-risk the expansion. Third-party ore purchase agreements are also in place, providing additional flexibility, although these are not critical to the project's economics.
What did Westgold Resources management say?
Westgold Managing Director and CEO Wayne Bramwell said:
The MXP is a capital-efficient brownfields expansion option to address this emerging constraint. It utilises existing infrastructure and long-lead equipment already procured to increase processing capacity from 1.8Mtpa to 2.9Mtpa, without the capital intensity, execution risk or timeframe of building a new plant.
What's next for Westgold Resources?
Westgold will now move forward with feasibility-level studies, detailed engineering and execution planning for the Meekatharra expansion, aiming for a final investment decision in late FY27. Brownfields resource definition work will continue in parallel to secure additional future ore sources.
If delivered as planned, the MXP is expected to lift installed capacity in FY28, setting up improved production, lower processing costs and enhanced free cash generation for the group. Production timing and costs remain subject to feasibility outcomes and final approvals.
Westgold Resources share price snapshot
Over the past 12 months, Westgold Resources shares have risen 97%, significantly outperforming the S&P/ASX 200 Index (ASX: XJO).
